HomeStyle Renovation Mortgage
The HomeStyle Renovation mortgage permits borrowers to include financing for home improvements in a purchase or re-finance transaction of an existing home.
HSR mortgage provides a convenient way for borrowers to make renovations, repairs, or improvements totaling up to 50 percent of the as-completed appraised value of the property with a first mortgage, rather than a second mortgage, home equity line of credit, or other, more costly financing method. Eligible borrowers include individual home buyers, investors, nonprofit organizations, and local government agencies.
Benefits to Borrowers
- Cost-effective way to renovate or improve a home
- Single mortgage means lower closing costs and typically a lower interest rate on a first mortgage
- Borrowers can qualify for up to 105% with eligible Community Seconds® subordinate financing
- Loan amount based on “as-completed” value of the home or the cost basis (purchase money loans), whichever is less
- Finance “luxury items” such as swimming pools and spas.